tv Varney Company FOX Business June 11, 2013 9:20am-11:01am EDT
♪ another night of rockin', ooh, waking up on the floor ♪ ♪ when i feel that young at heart and wine begins to flow ♪ ♪ sometimes i say yes when i ought to know ♪ ♪ imus in the morning ♪ >> watch out, here comes a selloff. good morning, everyone. no, no, no, this had nothing to do with scandal. this is all about ben, again. signs of strength in the economy, a slight rise in interest rates, and a big hint about ben, when ben will slow down the printing presses. you add it up and we're looking
at the a triple digit loss just a couple minutes from now. we have a headline from the apple conference, they ade fun of steve jobs. do you believe that? and we have the impact of all of those scandals, the rasmussen polls shows trust coming way down. but the money story is a stock market decline. "varney & company" is about to begin.
>> we'll get to the market in a moment. fresh out of the box, the scandal update. the irs still embroiled in targeting conservatives. it's reportedly ordering some high-tech surveillance equipment. coffee table cameras. potted plant cameras among the items. and why does the irs need those things? to police obamacare he asks. senator rand paul is leading the privacy movement and had to to say in an op ed in the journal titled big brother is watching
us. what is objectionable is a system in which government has unlimited and privileged access to the details of our private affairs and citizens are simply supposed to trust there won't be any abuse of power. this is an absurd expectation. rand paul emerging as a leader. and george orwell's 1984 the book. it celebrated its 60th anniversary on friday and shot up on the amazon best selling list. sales up 126%. that's big brother, 1984. to the nsa leak, edward snowden reportedly nowhere to be found and the fbi are looking for him. they're trying to find him before the bad guys do and the reporter who broke the story says more secrets will soon be revealed. the nation apparently is divided over the nsa issue.
we'll look at the stock there. now, look where we're going, down is the word of the day. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money u need
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♪ ♪ i'll get over you ♪ >> good choice, i'll get over you, a picture of steve jobs. they're not only scrapping some of his designs, but openly mocking them and we'll tell you about that and how the stock is reacting. we're less than a minute from the opening bell. let's bring in from chicago, larry levin. we're looking at a triple digit loss in the opening and is it because one fed governor says yeah, given my druthers, we would slow he the money
printing. >> i think it's more than that, i think the market is overbought and at that can be the trigger and we're start to go break through support levels and sitting on the lows and the s&p's 1625 and below that, there's not a whole lot of support until 1600, and 1605 level. this market as a long way to go and wants to do that. stuart: down we go, larry, thanks. they're starting to shout in chicago, and finishing the opening bell in new york and looking at a down side move in the early going. if you looked at those futures, you could tell how we're going to open when the real trading begins. we were expecting a loss of maybe 110, 120 points and the first half minute's worth of business, we're down about 40 and put us below 15-2. and keep a check how far down we go in the initial session of the trading day. check this out, most, yeah, all of the 30 stocks in the dow jones industrial average are down today. when they're in red and that
means they're down 30 stocks in that board, all of them in the red, all of them down in the first minute of business. a tale of two video game consoles, actually. and microsoft says it will sell the xbox 1 for 499 bucks. an all in one home entertainment hub and microsoft opened down sharply, and that's more in the general market with the move. the new sony playstation about $399 competing with the xbox 1 and the sony stock up in an otherwise down market. now what charles payne says about a company when the ceo steps down. if the stock goes up, then the ceo is lousy. where is lululemon after its chief stepped down. nicole: take a look where lululemon is trading right now. when you talk about christine day, christine day, as she steps down she's going to stay on board and guide the company until they get a new ceo, but it
was down 10% after hours yesterday. ubs, janney, canaccord, citibank, cut, cut, you cut, cut, cut, lululemon. >> okay. >> that's what we're talking about. >> that often happens with retailers especially when a popular ceo steps down, 14, almost 15% right now, right about 70 bucks a share. back to you in a second, nicole. i want to move on to apple. it's rolled out updates to the operating system and an mac book and a pressure app and icon designs and poke fun at steve jobs in the process. tell me about apple, when do they he open? >> i don't like that, i don't like jokes about other people and i certainly don't like jokes about somebody who has passed. so i don't like that, but i will say that the stock is to the down side today and we know at that apple has everything from the new mac book air, the i-radio and the conference that
everybody yesterday was waiting on and apple is going nowhere fast. it hasn't been 500 since january. last september a $700 stock. come on, give us a 5 handle or something. stuart: good luck with that. i will say that apple is down less than the overall market. check the big board for a second. we're down 140 points and puts us around 15-1. so the ppedictions of a big drop on the opening bell were accurate. down we go. 15-101. so, apple is making jokes about steve jobs and even responding strongly to its critics. listen to this. >> i am really pleased to give you our closest friend, the first glimpse of the next generation of map pro. [applaus [applause] >> oh, the laugh line was the important one, can't innovate anymore. and that was the company's marketing chief, by the way.
let's bring in bruce turkel. all right, bruce, you also believe that apple, that the guy at the end there is saying, look, we still are an innovator and make fun of steve jobs and say we are an innovator. you agree with that, don't you? >> i do, indeed. i think they continue to create products, easy smart, user centric and they continue to push the barriers forward. >> wait a second, what's new? i-rad i-radio, i think? it's fairly new and a copy like pandora, position, i don't see anything radically new on the horizon. if you see that on the horizon. you tell me about that now. >> i agree with you, i-radio is something they had to do because spotify and the new math pro is mind blowing. i run an ad agency, i'm a graphic designer.
for me that's innovative and ios 7, people say they changed the look. and not so quick. when ios 7 comes out in the phone, your phone, whether an iphone 5 or 4 is going to completely change, it's going to be completely new. here is the problem. apple creates these incredible innovations every five to six years, but the media cycle works so much fastinger and the financial cycle works so much faster that we expect to see the keynote products come out faster, faster, faster, i don't think that's going to happen. >> you're a branding guy. you're not a financial analyst, you're a branding guy, image guy, that's what you do. you're saying that image branding is for apple's success financially. you're saying that they're an innovator and they will still be cool. >> you're right, i'm not a financial guy. what i'm looking at, the different innovations on a regular basis.
they brought out the retina display, the mono chassis on the laptop and the magnet clip for the power. they continue to innovate, sometimes small and sometimes big and most importantly to the brand. apple continues to build the eco system. the phone, the tablet. itun itunes, maybe you'll use radio and different services and the services are closed, if they keep you and selling the experience, their brand will continue to rise. >> all right, bruce, you make a good argument and we'll listen. thank you very much. we're not going to ignore the cold market. the dow is now down 140 points as expected: we can't ignore gold because gold is down this morning. now, 14 bucks as we speak. let's bring in peter schiff with euro pacific capital. all right, cold down $14 in a day when stocks are down as well. your analysis first of the gold decline.
go. >> well, i think gold's been going down because people have the wrong assessment of the u.s. economy and the desirability of owning gold. what's more importantly, look at the bond market, stuart. the yields on the ten year of 2 1/4. rising interest rates are the achilles heel of the phony u.s. recovery. i don't know why nobody is worried about it. it's going to be a massive tax increase and much bigger than what we were looking at when we were worried about the fiscal cliff. but this affects the u.s. government which is the biggest debtor of them all and i think you could see yields up 4% on the ten year a lot quicker unless they buy more than 85 billion a month. >> your analysis for the gold decline is the same as for the stock decline. it's all about rising interest rates, and the bill that we'll have to pay for that? that's where-- you-- now? go. >> no. gold, gold is not going off down because the long-term rates are
rising. in fact, i think that long-term rates are rising because inflations expectations are rising and because people are losing confidence in the ability of the fed to dial back the qe. they're losing confidence in the credit worthiness of the united states and nothing to do with it. i think that gold is more you have a lot of speculators that are shorting the market. i think you have a great buying opportunity in the gold market. on the other hand the bond market is topping out, a bubble that burst in the bond market and starting its decline. i think that the gold market is about finished with decline. stuart: we are hear you. thank you, peter schiff. can we put up that board for a second. show me the 10-year treasury. is that a benchmark. 2.27% on the 10 year and there you go, 2.25%. that's the development which according to peter schiff and
others, is moving stocks and gold this morning. all right, now, i want to show you a live shot of the main square in istanbul. you can see a little bit of smoke that will be tear gas. still smoldering thereafter police used tear gas on protesters earlier today. the square looks pretty beaten up and the headline from turkey, 50 lawyers arrested in a democracy, no and that's not good news for democracy. there's no financial impact from the story, certainly not over here, but it's a sign of political instability in what was previously the most stable of muslim states. obamacare, here it comes, despite all of the efforts to repeal it. it is the law of the land. in our next hour, new details of a back door bailout for cities and states within obamacare. rahm emanuel plans to take full advantage of what is a bailout in chicago. the story and numbers for you coming up at the top of this upcoming hour. to the big board we're down 151 and puts us below 15,100.
that's a 1% decline thus far this tuesday morning. now, i'll give you 30 seconds worth of what else we're watching for you today. carbon pollution down in the united states. thanks in large part to fracking for natural gas. will that convince california to frack? we'll ask our california resident. we have what you might call a pate patent troll on this program. someone who buys patents and does nothing with them except sue other people who might be infringing on another patent. and why is hollywood churning them out? we'll have answers for you. we've checked oil up a buck 30 at $94 a barrel. rick perry now going after businesses in new york, but it's already happening. they're moving. we're talking billions in income power fleeing new york and going
to texas. that's next. >> texas land of opportunity, home of creative renegades. >> where dreams become rehe alt. >> texas is calling, your opportunity awaits. ♪ i'm leaving on a jet plane ♪ ♪ i don't know when i'll be back again ♪ ♪ oh, babe, i hate to go ♪ clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade...
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governor rick perry is so adamant on wooing businesses from new york and taking them to texas and launched a million dollar ad campaign filled in small business owners doctors, film makers ahead of his visit to new york, he's coming next week. how much, tell me, how much would a small business owners actually save by moving to texas? how money walks author travis brown is with us. all right, let's take a small business, mom and pop operation, new york which where they work right now. they've got their business. if they go to texas, give me a dollar number, how much they save. >> we're talking state and local tax burden, different, higher in new york than texas, on average, 5% adjusted gross income, several thousand a year. stuart: that's it that's the only saving just in taxes? >> no, you have compound investment income over a decade,
that can add up to real money and as you know, small businesses have often times thin margins. these days any hedge against rising federal tax rates that you can gain at at state and local level is a great thing to do. stuart: 5% savings year after year after year on the texas system alone and what about money that's already migrated new york to texas, how much are we talking about? >> what's interesting about governor perry's ad campaign, wide open for business, he wants more opportunity and business from new york, the way that florida has done. florida has taken 18 billion and texas only 1.6 billion. stuart: what's the time frame. >> from 1992 to-- >> so 20 years. >> yes. stuart: texas has only gotten 1.6 billion dollars worth of income out of new york. >> major investment firms have left california for texas and total sense why governor perry
would want to do more of that from new york. stuart: florida has gotten 18 billion out. >> it's roughly equivalent to the market and the new york yankees. stuart: but he sees a pot of gold in new york and hasn't gotten much new york money thus far and thinks he can get a whole lot more. >> part of the big national trend of course is this big migration away from the northeast, we're seeing hertz relocated from new jersey to fort meyers, florida. it's not a surprise that emmitt smith is being brought up to texas. stuart: this is not new. i've been in america 40 years and there's been that population migration away from the northeast and going on for a couple of generations now, but are you telling me that it's speeding up? >> it appears that it's polarizing between the states, states like texas and florida that are doubling down, lowering taxes and being more aggressive for these reasons in the job maaket that we have. and meanwhile, other states are going the opposite direction.
maryland, california are raising taxes and a big debate in new york about public sector unions and-- >> i was coming in this morning, public sector unions innnew york city are calling governor cuomo and giving tax cuts to the wealth think who don't lead them and objecting to the tax cuts and only minuscule tax cuts at that. >> and 192 pages of different tax exemptions and expenditures in the state of new york, public sector unions not being taxed on their income. >> give me your judgment. do you think that under pressure from governors like mr. perry, that new york will maybe turn around, see the light, frack for the natural gas which new york has in abundance. lower taxes instead of raising them all the time? do you think they will have a change? >> right now they're trying to do that with the marketing campaign. the reality, it's a tough place to open or maintain a business here and, but they will-- >> will they do it?
will they be pushed against the wall and say, it's just not working, we're going to lower taxes or we're going to get our own energy? you don't think so, do you? >> not without a strong interest from their public. stuart: and is there that strong interest? new york? >> i don't see that in albany at this present moment, but if they continue to lose the major businesses and continue a lose a lot of income, it certainly needs to be addressed in the future. >> travis brown, thank you very much indeed, sir. >> time for your gold report. where are we, down 14 bucks and now down 16. 1369 is the price per ounce. and with all of these scandals, all of this invasion of privacy, i've come to a simple conclusion, there's only one truly private way to communicate. i'll tell you all about it next.
unemployment. why does hollywood do this? we are talking about it in our next hour. plus, an obamacare back door bailout bombshell. rahm emanuel, one of the first to take advantage of it in chicago of course, and our foremost critic of obamacare joins us to explain it all. i'm thinking of changing the way i communicate. i've never been comfortable on the phone and my e-mail style leaves a lot to be desired. so, i'm going to turn full circle, it's back to the future for me. here is my take on writing a letter. i'll digress for a moment. i read a story last week about a very smart teenager who had to send a letter. his father had to tell him where to put the stamp and explain what a stamp was. he also had to tell him what a return address was, where to put it on the envelope and then he had to go out and buy the envelope. you get the point? letter writing is a lost art,
but consider this, in the electronic age, a letter is probably the most private form of communication. with the government looking over e-mails, videos and photographs and irs asking conservatives for details about the communication with the almighty, the letter remains secure. after all, you can always burn it when you've read it. that's security. and obviously, i am not going to try to run my life by mail. in this day and age, you simply can't. the postal service is really slow and getting slower. but i am very aware of the lack of privacy in the modern world. walk down the street, you're on somebody's camera. type anything into that computer and it lives forever and you have to assume that somebody you don't know will read it. the photos you send around, they're now out there and you can't get them back and for heaven's sake be careful before you press the "reply all" button. the moral of the story, electronic is not private, never has been, it will never about
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gas-rich california jump on the fracking wago? golden state guy, tom sullivan, says yes, they will. hollywood turns up the nose at people who actually work, and they were asked to trust google not to play games with the information they hold. big market drop today. here we go. ♪ all right. check out the market, first of all. we are coming back a little, down 150, and now down 109. charles, is this all about one fed saying he'd stop the printing of money or slow it down now. is that what it's about? >> it's news about japan, that they didn't continue or expand money prints operations. we were down before he spoke. >> japan? >> japan. the markets wanted to see them continue money printing operations.
they are committed to the quantitative easing, but they took a break this particular meeting, and it spooked -- >> plays no role? >> yesterday, ball lard talk about keeping it going. unless a bull, a dove becomes a hawk or a hawk a dove, everything from the fed is not news. really, the big thing moving the markets right now is a little bit of disappointment that japan didn't notch up the money printing operations a notch or two. >> so glad you joined us. i didn't think that was the reason. all right, thank you, charles. we have some winners though. it's a down market, a couple winners. starting with dole. i used to call them the pineapple people. is that legit, nicole? >> that's in the realm, it's the right area there. the stock's up 21% because the ceo is now moving forward to try to take over the rest of the country, $12 a share, 60% that he's looking to buy there, and
so valuing the company just over $1 billion. this was an unsolicited bid, and he owns 40% of the company already. the chief executive david mor -- murdoch, and they are getting a boost. >> the market thinks he bids more, if he goes to 1233, overs 12, no, he has more, i think that's what's happening. there's another one for us, winner, gamestop. tell us about it. >> as i read it, i can't believe it. just hen things are dying, don't think it. gamestop sells video games, hardware, software, and now they are taking free orders of the x box 1 made by your microsoft, and the playstation 4, the next generation. i mean, just when you thought it was over and, you know, you read the reports, oh, well no new games or hardware. there's also new games and
hardwwre, and this 1 evidence of that today. >> nicole, i have charles laughing at me because i believe we put gamestop op death watch. >> it's going straight up. now, the guy who came on for death watch said in three years. >> he did. it was not me. >> but it's an unusual reaction to a stock on death watch. >> yes. our guest compared gamestop to block buster video. >> absolutely, absolutely. >> we put it on death watch. now it's up 7%. >> what happens with the new systems, people sell the old systems, and there's a big demand for that for parents who can't afford a new one. >> part of the nsa scandal developments here. booze allen hamilton, the company that employed edward snowden fired him yesterday for violation of the code of ethics working there for less than three months. meanwhile, snowden is reportedly
nowhere to be found, and the nation is divided whether or not it's acceptable for the government to access our phone records and other information. a recent washington post poll shows that more than half of us think it's acceptable for the government to do so, but when asked if they trust the government on the issue, a poll shows most people do not. joining us now, congressman mark meadows here, a republican from north carolina. congressman, which side are you on? do you want to stop this data collection or see it continue? >> well, obviously, we need to look at this in the context of the constitution. this provides us a great opportunity to revisit this and look at it and make sure that our constitutional rights are upheld and protected because as americans we have to rely on that. that's that rule of law that we've come to expect. >> so if the government, through whatever agency, is, indeed, collecting all this information and storing it, if they are,
indeed, doing that, does that breach the institution? >> well, i think what we found is we've got to end an environment of coverup in washington, d.c.. you know, when james clapper -- >> come on, sorry to interrupt, you got to answer the question. is this constitutional, yes or no, in your view? >> well, you know, obviously, without a warrant, if they are looking at perm information without a warrant, that violates the constitution, and, certainly, that's something we have to address as congress because it would violate our fourth amendment rights, and so in answer to that, we sent a letter last week saying we've got to get more details. send to the nsa and fbi saying we want to make sure our constitutional rights are not violated, but if they are looking at personal information without a warrant, yes, that's a violation. >> so i put you in rand paul's camp. you see his editorial in "wall street journal," big brother is looking at you, and we don't like it.
you're in that camp? >> i'm not in anybody's camp, but the camp of the constitution, and really when you uphold the constitution, you never -- you never go the wrong way. when we look at that, we've got to end an environment of coverup here in washington, d.c.. >> let me, just to the irs scandal. what are you going to do throughout the summer that's going to bring more information to the table about what they did and who told them to do it? >> we're invest gaiting that daily. i was on the phone yesterday receiving information through our oversight and government reform committee that we're working with, and we've got new information that we received just yesterday with regards to bonuses that are paid to individuals that will be breaking here shortly. >> can you tell us now? >> glad to share. we know, for a fact, sarah ingram hall, receivedded bonuses in excess of $35,000 in 2010.
again, $26,000 in the last two years, and so when we do that, those kinds of excessive bonuses that represent 15-20% of the money she's gotten of her salary is just inexcusable. i have a hard time explaning that back home why people up here would be getting those bonuses. >> ms. hall promoted up and bonussed to another job? that's what happened? >> well, yeah. she got bonuses and she's not the only one, and so we are actually sending a letter today with an inquiry of all the bonuses paid out because the american people say enough is enough. they want to be treated the same on main street as we get treated here in washington, d.c.. i'm here to uphold that. >> all right, congressman mark meadows, isn't north carolina all republican all the time, every single legislative office held by republican, am i right? >> i wish it were that way, but i tell you it's not. >> thought it was.
congressman, thank you for joining us. i appreciate it. >> thank you, thank you. >> eric schmidt organized president obama's team, re-election team that is. he has invested millions to keep the team together to work on future democratic campaigns. can eric shipment and google with trusted with the information available to them? here's my take on that. google is thee most powerful internet company in the world knowing everything about you..@ eric schmidt, google, and the data team assure us the data processing team will be benign, no irs style intime -- intimidation, no passing lists, no shenanigans. they are assuring us. it's a question of trust. that's ad comoty in short supply. the irs, benghazi, nsa, all eroded the public's trust in government, and we find the main information, chemoer, google,
worked hand in glove with president's reelection efforts and will be using the technical expertise on future campaigns or former google people will do. do you trust them? charles payne? do you trust them? >> oh, i don't know, it's tough. schmidt's relationship with obama goes back to the 2008 election, poured a lot of money, personally coached not just on technology, but how to even run the operation at the boiler room they called it, during the reelection, there's a corner that they called the cave, and that's where the technology guys put together microtargetting. that scares me. it was a game theory application originally. the idea the guy who did it says he will never use it for republicans spooks me. it scares me. that's been put october there publicly. you got the technology at your
finger tips only using for one political party, that's a huge red flag. >> interesting, charles. good analysis. >> thanks. >> thank you very much, sir. back to the stock market, down 140 points, coming back a bit, and now we're back down again. lululemons, the chief there announced she's stepping down, and apparently, that had a major effect on the stock. tell me. >> it's interesting because we saw that yesterday moving to all-time highs. to see it today pull back over 16%. the ceo, christine day, right after the earnings came out, the news was pretty much in line, did well enough despite the fact of the pants problems, but she's going to stay on board and try to find the new ceo to replace her, but the story just brings uncertainty with it. i mean, it was bad enough the products were not good enough. it's bad enough their pants are $100 and not as hot as they used to be, and now there's the uncertainty of who is going to run the company?
>> the charles payne rule is that when a ceoes, and if the stock is up, that means the ceo who is leaves was not that good. if the ceo leaves, the stock is down, that means the ceo was good. have i got that right, charles? >> she was not just good, but tremendous. here's the thing. boards are not tough enough sew when there's a big fiasco, kick out someone, the market, you know, you get board thing from people who are not in the stock market. the fact of the matter is i think they overreacted. christine day, a big blow, the stock is oversold. it was a mistake. should have kept her. >> big drop, 16%. >> she did an amazing job, amazing job. >> all right. the very important story here. we've been hinting at it for years here on the show. we're talking about the back door bailoutompassed within obamacare. cities and states can shift retiree health plans to
obamacare. chicago's mayor is already doing it announcing plans to move city retirees on to exchanges, subsidized exchanges to pass off $800 million in unfunded retiree liabilities. betsy mccoy, at the center of the story for years now is with us. a city or a state, they can't pay the health care benefits to their -- >> unfunded. they have not put the money aside. >> they have not put the money aside, so as a way to bail them out, they shift costs to obamacare. >> you'll see this ploy attempted all over the country, of course, the big winners are the local pauls and local taxpayers who otherwise have to come up with the money, but the losers are federal taxpayers, of course, all across the country, but even more importantly, the retirees themselves because they are at risk for losing the doctors and hospitals they
currently use when they get on exchanges, it's going to be a small network of doctors and hospitals willing to take much lower fees than they are currently. >> different doctors and hospitals probably and a different level of care. >> drive by the academic hospital and go to a hospital that's willing to take lower reimbursement, and that's what is going to make retirees very angry, and probably produce lawsuits. >> that's interesting because that means that the retirees will be paying a certain price. >> a big price. >> the federal taxpayer will be paying a certain price. >> that's right. >> the winners are the cities and states which slough this off. >> right. and the local pauls not held accountable for the failure to plan and be truthful in the past. >> some of the local pauls can be voted out because of the unhappiness of the unions of the guys who are going to get chopped off. >> right. the ohio insurance department announced this week that premiums on the exchanges will be 88% higher than what people
paid for individual insurance last year on average in ohio. >> but, real fast, doesn't this mean that the overall cost of obamacare goes up? we're going to be shelling out more money because more peoole -- >> definitely. the president in san jose, california said this week that people buying on exchanges get a better deal than they've got. maybe if you're uninsured, that's true, but for everybody else, they are really losing a lot of money in the deal. >> betsy, we appreciate you being with us again. >> thank you. >> carbon pollution down in the united states thanks to fracking. will -- fracking for natural gas that is -- will that open the door in california for them to frack and go get their own natural resources? our resident california has a decision on that next.
>> apple unvailed some new items yesterday, and they made fun of steve jobs while doing it? how branding guy says apple is still an innovator, and the stock is up this morning in a down market. a price war begun for the latest gaming consuls. sony announced their playstation 4 costs $499. $499 for the price of the microsoft's latest xbox. microsoft is down 2%.
shares of sony, by the way, they are up this morning. huh, okay. soft bank just upped the bid to buy sprint raising the offer to $21.6 # billion in total. sprint stock rising, obviously. co2 emissions up globally last year, but fell here in the states. why was that? fracking. tell you all about that next. a : hohow old is the oldest person you've known? we gave people a sticker and had them show us. welearned a loof u have known seone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that sn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ all your imptant legal matters in just minutes.
the latest numbers from the international energy agency, carbon emissions rose more than 1% globally last yearings -- year, but in the united states, emissions dropped nearly 4%, half the result of fracking for natural gas. somehow, that little tidbit was buried in the reports. did not make the headlines, but ameeica's emissions down. does this open the door for california to frack? it's got huge natural gas reserves. will they get them? here's tom sullivan, our res sent californiaian here at fox business network. welcome to new york, tom. >> yeah, ha-ha. >> answer the question, directly, do you believe that california will go and frack full till for all rereceivers its got? >> yes, i do. >> wow. >> i do believe that. one of the republicans you talked about is that the california assembly, a number of -- which is controlled by the democrats -- went over to, say, they wanted to put a ban on
fracking, and they said, no, no ban. jerry brown, who has green country den reels coming out his ears says, you know, we ought to take a look at it, and the surveys, there's a lot of polls out there now, and the polls are really just misleading, i think, baa there's one that says 70% of the people in california are against fracking, but if you go in, and you look at the questions, you find out they put all kinds of, are you for fracking if there's chemicals in your water? >> oh, oh. >> are you for -- you know, and it's that sort of stuff. >> loaded, loaded. >> i know. if you get down to would you be for fracking, 56% of california says yes, if it lowers my energy costs. >> oh, there inlies -- now, wasn't there a difference between the people inland people, the imperial valley, stockton, the rest of them, high up employment, and the elites on the coast, the technology elites of san fransisco, hollywood elites of los angeles. >> right. >> they feel differently about
this, don't they? >> they do. the interesting part about it is the people in the central valley are all for this, and that's where it will be. the shale goes from modesto, california to bakersfield, but the people on the coast that -- they won't be fracking in their backyard, they are against it. they are against the other people having fracking. >> the elites are always on the wrong side. >> really are. here's the other dirty little secret is california has been fracking for 30 years going back -- >> yes, let's be clear. fracking, that's fracturing of the rock under the ground and getting it out. >> yes, yes. here's the difference between california and kansas. kansas started in 1947 doing this. it's been around for a long time, and there's been no adverse effects from any of this. it's an easy story to stir people up giving them part information. here's the thing. in california, the oil is easier to get so fracking really isn't
all that much of a benefit. in other parts, south dakota especially where it's hard to get, fracking has been a god send, but it's not that much -- it won't help that much -- they could do vertical drills a lot more in california and get a lot more oil. >> there are 15 billion barrels of oil in the one deposit, 15 billion, that's over a trillion dollars worth of oil there. you think they will get it? >> the people there are primarily for it. the benefits, the studies, increased gdp, increase the personal income, $24 billion in additional tax revenues for california, and that's what got jerry brown's attention. he's 75 years out, and i thought he was a one-term governor for fun, but the people i know who work with him say he's going for two terms. >> on the basis of fracking?
>> no, just loves -- just a public office holder and has been most of his life. >> tom sullivan, formally of california, joining us in new york, tom, good stuff. >> thank you. >> where are we you? the ns organization leak scandal. you know, it really does have the nation divided. some say they don't minded government monitoring their phone calls and e-mails in the name of security, and others say it clearly violates the constitution. the judge on that next. ♪ ♪ i turned 65 last wk.
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>> oh, hey, look at this, the dow is down less than a hundred points, somewhat of a come back, but not much though. charles is making money. today, following up on the recommendation the clean harbors. you recommended that days ago. >> yeah, last week we talked about the stocks in the hurriccne season, but this is more than a hurricane play. barrens followed it up with a very good article about the guys and how much money they made. >> why are they down?
>> the marling's down, trading with the market. this is what you buy on potential. they like big oil, cleaning up environmental oil, big oil, trash, could easily become clean harbor's treasure. the risk-reward is phenomenal. it could go up significantly. what hurt them was manufacturing. >> a good charge. >> you know, sometimes you buy low, sell high. it's an old axium, but it's a good 401(k) stock. >> interesting, charles, thank you very much, indeed. back to the nsa, an issue of doesn't, doesn't it? the polls are divided. we know where the judge stands. all rise, everybody. judge andrew napolitano is here. here's my opinion, and you can rapt against me. it's okay for the government to collect information and store information about people in their personal lives.
that's okay as long as their only collect it to go after terrorists and wrap up terrorist networks. that i'm okay with. everything else, don't do it. what do you say? >> that presumes a level of trust in government which even the constitution doesn't give it because the purpose of the fourth amendment, which actually was written because of what british soldiers did to us what parliament let them write their own search warrants, the purpose of the 4th amendment was to prevent dragnets and fishing expeditions because the fourth amendment says when the government wants something, they have to present evidence of crime on the person they want the thing from or about, and they have to particularly prescribe the place to be searched or the thing to be seized. they cannot say we're looking for two terrorists, one will bomb times square, one will bomb miami. i'm making this up as a hypothetical. give us the phone records of every american in case these two guys talked to somebody. >> okay, hold on. let me interrupt a second.
a bad guy in yemen calls somebody in boston. okay. we know about that. we find that legitimate to surveil that phone call, okay,n. i want to know who else called that person in boston? i want everybody who ever called that number, and i want to know every who called that number and who called them. i want to wrap up that entire network, and the only way to do that is if i got all the phone records and the e-mail records, please, going way, way back. >> not so. not so. there's lawful, constitutional, and technical ways for the government to acquire information without getting everybody's phone. you see, this is based on government laziness, on the government saying to a judge in a secret court, so secret that the judge's can't keep copies of their own records. the judge who signed that warrant does not have a copy of it. the government going to a secret court saying it would be easier for us in looking for these terrorists if you let us look at everybody's phone bills rather than making us go out and get
evidence against the people whose phone calls we need to know about, but the constitution doesn't let the congress or the courts change that standard. otherwise the constitution means nothing. >> last question, rand paul seems to be the leader of the emerging privacy move. >> that's a fair statement. >>ments a class action lawsuit, 10,000 people to join him, sue the government or who? i don't know. do you think that's successful? do you think that this surveillance program is brought to an end? >> i think it will be politically successful because it will galvanize opinions. i don't know that the courts accept it because the government has written legislation that makes it impossible or nearly impossible to sue the government. >> precisely, judge. you are so right again. >> even when we disagree, i'm right. >> thank you very much, judge. appreciate it. >> pleasure. >> the dow now down only 77 points, cut its loss in half. there you have it. president obama cracking down on
so-called patent trolls. next, someone who makes money buying patents. how does he feel about the president's crack down? that's next. this man is about to be the millionth customer. winstead we had someone igo ahead of himu? and win fiy thousand dollars. congratulations you are our one millionth cuomer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't thin you're special anymore, you need an ally. ally bank. your moneyeeds an ally.
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that's when someone enforces a patent, usually, with no intention of making or marketing the prarlgt for which the patent represents. joining the company is report burrman who runs a company that specializes in what they call patent monthization. >> let's get to it. >> okay. a patent troll buys a patent, takes control, doesn't use that patent to croat a product, but uses it to sue somebody else who they say is infringing on that patent. you are a patent troll. this is what you are doing. you are contributing absolutely nothing to our society. you're just gaming the legal system. >> well, what we do is three things. number one, we're asserting pa tents we spent the last 30 years developing. those were developed in-house, and we are starting those number one. >> all right. >> number two, though, we help small inventers who are trying
to monetize their pa tents as well. what it's about is we don't have any problem with pa tent reform, okay? >> but you're -- >> making the system better. >> are you helping inventors who got a patent on their invention, put that invention into use or helping those inventors get and use that against somebody else? >> we're allowing inventors to do what the constitution, what the patent act intended for them to do, to receive benefit for their innovation, and in receiving benefit and consideration for their innovation, they gooback and invent again. large companies do it. major -- >> invention is not used? >> it is used by somebody else. >> yes. >> a patent, in essence, is a contract with the government in exchange for disclosing your invention to the world, you get limited rights 20 use it for a limited period of time, so they show it to the world, but they
have the rights, again, for a limited period of time. they are not necessarily making products, but there's nothing in the patent statute nor in the constitution that says you don't have to make products. part of the reason they are not making products because there's huge beariers to entry. a lot of the barriers to entry are created by multimillion dollar technology companies. it's unfair for them to complain that these companies aren't making products, and yet prohibit them from entering the markets. >> did -- charles, you mentioned earlier, you think president obama is protecting his donors in silicon valley? >> absolutely, i think what we saw from the president last week with the executive orders and wish list to congress protects his silicon valley donors, and a company like google says they have a right to use any intellectual property anywhere in the country whether they developed it, whether it's under patent, they'll reimburse, but they use the technology, and i think the president's got their
back op it. >> a news flash for you. not all large companies, but large companies sometimes engage in predatory behavior. here's another news flash. sometimes they steal things. you can't steal other people's technology and then complain when patents are asserted against them for stealing the technology. >> you're remitting the little guy going up against monsters stealing intellectual property? >> we are the guy guys; however, there's abuses in the industry like there's abuses in every industry, and we're for patent reform, but reform that focuses on the bad activity, not clashing every company that doesn't manufacture products as the bad guy. >> if i say the lawyers are in the middle of the patent business and slowing down innovation, have i got a point to truth? >> well, you do have a point of truth in that litigation itself is a very inefficient process.
in i reforms that make litigation more efficient, processes for expediting discovery, for getting the parties what they need early in the process to resolve disputes, that we would be in favor of. i want to add that there was a case years ago that basically said i can't approach you and talk about patent infringement without you being able to file or having the right to file a lawsuit against me. dumbest case in ten years. i can't approach you on a friendly basis without you having the right to sue me. why not get rid of that case? pass legislation that says i can approach you without first filing a lawsuit to see if we get a deal done. that would be needed. >> all right. you talked me to death. you know that? you did. are you a pa tent troll? legit to call you that? >> a patent modernization company. i've. called worse. >> robert, we appreciate you being with us. itts interesting stuff.
taking preorders for play station 4 and exxbox 1. the stock up 8%. we are adverse indicator when we put it on death watch. lululem mop taking a hilt. the ceo resigned after more than five years. the stock is taking it on the chin, down 16%. the ceo of dole made an offer to buy the company for 12 bucks a share to take over the company's debt obligations, and the board says they'll review the offer, and many people think they will be allowed to offer more money to get them. the stock up 20%. tim tebow headed to new england. the former jet expected to attend a patriot's mandatory camp today. more on the markets and all things money next.
>> what is going on? the dow shaved # half of the losses in 20 to 30 minutes. nicole, why is this happening? >> look, we've about 145 going top to bottom. here the leaders, home depot, cisco somes, pfizer, not doing all that great, but when i talked to the traders here, the idea is we're why an up trend, that the selloff that we saw this morning of a percent was too much. it was a little over done. they are taking them back. actually, i was talking with mark newton at execution partners this morning, and he said i'm telling them, you know, buy on the pull back, and that's
what people did today. they are bullish overall, and they are buying on the pull back. >> that's a good explanation. i got to say. very good nicole, very good. explain why microsoft dropped so much today, but, no, no, no, save that for later. >> leave it to you. >> thanks. the dow is down 68 points, was down 150. that's a turn around. glamourizing unemployment seems to be the new theme in hollywood. the great gatsby that's guilty of that, a movie critic for the washington examiner. glorifying unemployment or at least not working. let's start with the great gatsby. how does it glorify unemployment? >> he sort of has a job, a bootlegger, but he's a hard working nine to five guy, go to wall street, but everyone hates his job because he's working on wall street, and, you know, in
this movie, they've changed it and put him into a sanitarium driven crazy by his time with gatsby and time op wall street. it's worse than the book. >> that's a stretch, i think, but nonetheless, i'll move on to "this is 40 #," i've not seen it. tell me how it glamourizes unemployment. >> it's a great movie, but paul rudd is barely working, has a record label, barely working, you know, doing so forely -- poorly, he takes another mortgage on the house, doesn't tell his wife, but at the end, all is forbegin guys always get the girl in movies. the movies used to be the american dream, you know, people abroad watched american mew vies, thought about the dream, which was to work hard, get ahead. now, if you watch movies these days the american dream is to have a comfortable couch, a high
quality television, and higher quality weed. >> weed, good one. all right. iron man 3. again, i've not seen it. tell me. >> this one, actually, i think, is surprising. people might not realize, it's subtle. at the end, and i hope i'm not giving away the spoiler here. i think most people who are going to seen it have seen itenu know, everyone almost dies, you know, paltrow, the girlfriend, wants him to quit working for awhile and spend time with her, and he agrees to that. there's no -- she doesn't seem to appreciate the fact that all his hard work throughout the years of neglects her is what created those high powered devices that saved their lives. again, there's just no sense of the value of work in hollywood. there's no sense of the value of it. >> you are an intense critic of the world of barack obama. do you think maybe you're reading your politics a little
bit too much into what you see out of hollywood? >> you know, i don't think so. it's interesting because hollywood is kind of a confusing place. they are a little hypocrisy going on there. i mean, these are the people who asked barack obama to raise their taxes, please, raise taxes on rich people, but lobbied successfully to continue getting a tax break for hollywood that they can -- movies made in the u.s., they can write off up to 15 million expenses for a movie they make in america. i think there's hypocrisy there. i think they, themselves, are confused. movies are made by driven people, but nowadays, the bad guys are the driven, ambitious people. >> all right. you won me over. i agree with you. >> i'm not sure what charles has to say about that. >> we'll get to that. go ahead,. >> okay, listen. i agree a thousand percent. interesting he brought up paul rudd, the king of the
never-working roles. he never works, he gets the woman, and he ends up with a business and a fortune, but the hypocrisy is amazing. she was kind on hollywood at the end. >> yeah, the big sales of 1984, the book -- >>126%. >> separate subject, but that appealed to me. remember solyndra, do you? the president called the factory a great innovator, gave it a loan, and the company went under, and the emergency secretary behind the deal is defending it. we'll deal with that next. ♪
>> coming up at seven tonight, government spying on op citizens, obama scandals, dreamers, border security, beginning debate on the gang of 8 immigration bill. that's on lou dobbs tonight at seven eastern. be with us. >> former secretary, stiewfn chu still at it praising loans that the government provided solyndra calling the program more successful than wall street. they received $535 million loan guarantee from the administration and declared
bankruptcy. all right, charles. here's your chance to comment. the secretary looking back says, hey, we were better than wall street when it comes to picking good companies to waste money op. >> yeah, it's a shame. you know, they got to keep the pr stuff going. you know, i went to see the secretary speak years ago with bill clinton not far from here, and some of the thing he talked about just shocked me. this is a brilliant guy from a brim lant family, but, you know, the idea of sharing our top secret information on this type of stuff with the adversaries and, you know, he's just -- he's just 1 # 00% cop vinceed, and the obama guys, the players, they try to do what obama does with respect to saying this stuff works and never sounds honest from their mouths. they don't have the charm the president does. >> there's a long list of failures in which we have invested taxpayer money and the companies are out of business. there's a long list of those companies. the if american public could see the giant wind farms, how much money we sank in them and how many jobs they created, $400
million projects that created a dozen permanent jobs, that's appalling. it's called return on investment, roi. the roi to the administration with the clean energy stuff is abysmal. you couldn't raise a nickel from it. >> great words. more varney and company next. we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enj all of these years. ♪
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president will shows most people do not. >> they are looking at personal information without a warrant it is a violation. i am not in anybody's camp. i'm in the cab of the constitution. stuart: we are out of time. dagen mcdowell and connell mcshane at lot of time. dagen: never enough time, thank you. if you believe the housing market is going to lead the economy back you are where you connell: we have brought back this great panel of hours, biggest names in american real estate, barbara corcoran, and all so bob massey. this is the team and they are here for the entire hour to bring you the business of real estate on fox business. things worked out last time and will work out again because this is a terrific panel. dagen: barbara is fired up. she is always fired up.